The trend condition in S&P E-Minis remains bullish and the contract is trading above the 50-day EMA....
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Sell-side names continue to adjust their RBA calls in a hawkish direction after the latest round of monthly CPI data. TD Securities note that “CPI is running hotter than the RBA would probably like and with activity holding up, this prompts a change of RBA call. We no longer forecast RBA cuts in November and February”. They will issue a full update of their view on Friday. They recommended paying November ‘25 RBA-dated OIS alongside this call change.
0RZ5 97.9375/97.75ps 1x2 with 2RZ5 97.75/97.625 ps 1x2, sold the strip at 2.25 in 2.5k.
ERM6 98.25/98.37cs, bought for 2.25 in 10k.